Age 60 to 64 & Retired

Accessing your Super Benefit when aged between 60 and 64 and "Retired"

If you are aged between 60 and 64 your Super Benefit is preserved until your "Retirement". There are absolutely no restrictions to accessing your Super Benefit when aged between 60 and 64 after you are "Retired". In this case your Super Benefit can be accessed as either a Pension or Lump Sum withdrawal.

Definition of "Retirement" when aged between 60 and 64

For a person between 60 and 64, retirement means you simply need to cease your employment. The intention to return to the workforce is irrelevant. This means that you can essentially return to work soon after ceasing your employment, but you will still deemed to be retired and able to access your Super Benefit as required. The definition of retirement in this case is less stringent than for those under 60.

As soon as you retire from the workforce and met the definition of “Retirement”, please complete the “Retirement” Application here.

Pension withdrawals when aged between 60 and 64 and "Retired"

When you are aged between 60 and 64 and are "Retired" you have the option of commencing a Pension Income Stream from your SMSF. A Pension simply means that periodically (eg each month or other period you nominate) cash is transferred from your SMSF bank account to your personal bank account to fund your living expenses. There are two types of Pensions you can start in an SMSF namely a “Simple Account Based Pension” and a "Transition to Retirement Pension". When you are aged between 60 and 64 and are "Retired" you can only commence a Simple Account Based Pension.

If you do decide to commence a Simple Account Based Pension from your SMSF and are aged between 60 and 64 and are "Retired", then you must take a minimum pension income per year. For more information on the minimum pension amount, please click here. There is no maximum pension amount if you are aged between 60 and 64 and are "Retired" and you are free to access all your Super Benefit as desired. No tax is payable on Pension withdrawals made after age 60. For more information on commencing a Pension, please click here.

Lump Sum withdrawals when aged between 60 and 64 and "Retired"

The alternative way to access your Super Benefit when you are aged between 60 and 64 and "Retired" is as a Lump Sum withdrawal. A Lump Sum withdrawal is simply an amount accessed from your SMSF that is not a Pension payment. You can make Lump Sum withdrawals whenever you like from your SMSF once you are aged between 60 and 64 and "Retired". No tax is payable on Lump Sum withdrawals made after age 60.

Can I choose the withdrawal types?

If you have NOT commenced a Pension from your SMSF all withdrawals made from your SMSF will be treated as a Lump Sum withdrawal when aged between 60 and 64 and "Retired". Alternatively, if you have commenced a Pension from your SMSF, you have the choice to make either Pension or Lump Sum withdrawal in addition to the annual minimum pension amount, which must be made as Pension withdrawals.

We caution that Pension withdrawals and Lump Sum withdrawals are two different withdrawal types and different rules apply. For more information on the difference between Pension withdrawals and Lump Sum withdrawals, please click here.

Not required to access Super Benefit when aged between 60 and 64 and "Retired"

If you are aged between 60 and 64 and "Retired" you are not required to access your Super Benefit as either a Pension or a Lump Sum withdrawal. The choice is entirely yours. In fact you can let your Super Benefit accumulates in the super environment indefinitely. It is noted it is generally tax advantageous to commence accessing your Super Benefit after age 60 as a Simple Account Based Pension (SABP) when "Retired". This is because when you commence a Simple Account Based Pension you never pay tax on the income and capital gains on your SMSF Investments. However the amount of superannuation benefits that you can use to commence an SABP is limited by the Transfer Balance Cap. For more information on Transfer Balance Cap, please click here. Similarly any monies you access as a Pension will be tax free also after age 60.

Contributions when aged between 60 and 64 and "Retired"

If you are aged between 60 and 64 and "Retired" you can still contribute to superannuation (no work test is required but subject to the contribution rules). These contributions are not preserved and can be immediately withdrawn as a Lump Sum or Pension (if you have commenced an additional SABP using the contribution amount) at any time following the contribution.

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The contents of this website are of a general nature only and have not been prepared to take into account any particular investor's objectives,
financial situation or particular needs. ESUPERFUND does not provide financial product advice or recommend any financial products:
This applies equally to those financial products which are established for your SMSF when you become a client of ESUPERFUND.
Where this publication refers to a particular financial product then you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the PDS before making any decision about whether to acquire the product.
We also recommend that you should seek professional advice from a financial adviser before making any decision to purchase any financial product referred to on this website.
While the sources for the material are considered reliable, responsibility is not accepted for any inaccuracies, errors or omissions.
When setting up a SMSF it is important to understand that additional fees may apply that must be carefully considered prior to making a decision to setup a SMSF including an
ATO Supervisory Levy
,
Company Trustee Setup Fee (where applicable)
, and
Investment Fees
.